The music royalties ABS sector has expanded meaningfully in recent years, supported by strong investor demand for uncorrelated cash flows and the growing institutionalization of music rights. Although performance in the asset class has remained largely stable, KBRA has observed variations across individual catalogs that make up the collateral, particularly as transactions have seasoned. Some transactions have benefited more from resilient streaming growth and industry tailwinds, while others have faced pressure from underperforming assets and delayed revenue realization.
This KBRA report is a follow-up from our previous report (see Music Royalty ABS: The Beat Goes On), which served as a primer for the sector. In this report, we share performance insights across KBRA’s rated universe of 15 issuers, the majority of which were issued as private placements. To date, the…